Question

From the following information, calculate the amount of medicines that will be debited to the Income and Expenditure Account of Sarojini Hospital for the year ended 31-3-2019.

Particulars	1-4-2018	31-3-2019
	₹	₹
Stock of Medicines	3,87,000	4,79,000
Creditors for Medicines	6,77,000	9,83,000
Advance paid for Medicines	1,40,700	1,79,300

Additional Information:

During the year ₹ 17,00,000 were paid to creditors. Medicines ₹ 9,33,000 were purchased for cash.

Answer 1

Dr.	Income and Expenditure Account For the year ending at 31st March, 2019			Cr.
Expenditure	Amount (₹)	Amount (₹)	Income	Amount (₹)
Creditors for sports materials		41,000	Stock of sports materials	38,000
To Medicine Consumed:
Opening Stock	3,87,000
Add: Cash purchases	9,33,000
Add: Credit Purchases (WN 1)	19,67,400
	32,87,400
Less: Closing Stock	4,79,000	28,08,400

Working Note:

Dr.	Creditors for Medicine A/c		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Balance b/d (Opening Advance)	1,40,700	By Balance b/d (Opening Creditors)	6,77,000
To Bank A/c (paid to creditors)	17,00,000	By Credit Purchases (Balancing figure)	19,67,400
To Balance c/d (Closing Creditors)	9,83,000	To Balance c/d (Closing Creditors)	1,79,300
	28,23,700		28,23,700